Using the Following Information, Find the Price of the Call

question 20

Multiple Choice

Using the following information, find the price of the call option:
Stock price S_t=$ 55, Interest rate I=5%,
Strike price X=$ 52, Put premium=$ 1, Maturity: T=3 months

• A)$6.47
• B)$0.62
• C)$8.47
• D)$4.64

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